The currency of New Zealand is the New Zealand Dollar (NZD), written as NZ$ and divided into 100 cents. Issued and managed by the Reserve Bank of New Zealand, it is the only legal tender across the country and circulates as a mix of colourful polymer banknotes and durable coins. Nicknamed the "kiwi" by traders, it is among the most actively traded currencies in the world relative to the size of New Zealand's economy.
The New Zealand Dollar at a Glance
The New Zealand Dollar carries the ISO code NZD and the symbol NZ$, often shortened to a plain dollar sign within the country. To distinguish it from the Australian, US, or other dollars, the international form NZ$ is used. Each dollar splits into 100 cents, though the smallest coins were withdrawn long ago, which affects how cash payments are calculated today.
- Official name: New Zealand Dollar
- ISO code: NZD
- Symbol: NZ$ or $
- Subunit: cent (1/100)
- Issuing authority: Reserve Bank of New Zealand (RBNZ)
Beyond New Zealand itself, the NZD is also the official or de facto currency of several Pacific territories, including the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. This gives the kiwi dollar a footprint across a wide stretch of the South Pacific.
A Short History of the Kiwi Dollar
For its early decades, New Zealand used British sterling and then its own New Zealand pound, introduced in 1933 when the country formally separated its currency from the British pound. The modern decimal currency arrived on 10 July 1967, when the New Zealand Dollar replaced the pound at a rate of two dollars to one pound. The switch to a decimal system of dollars and cents simplified everyday arithmetic and aligned New Zealand with international practice.
In 1999, New Zealand replaced its paper notes with polymer banknotes, following the lead of neighbouring Australia. The plastic notes last far longer, resist tearing and moisture, and incorporate transparent windows and other security features that make counterfeiting difficult. A refreshed "Brighter Money" series later updated the designs with even more vivid colours and sharper imagery of native birds and landscapes.
Banknotes and Coins in Circulation
New Zealand banknotes are instantly recognisable for celebrating national figures on one side and native wildlife on the other. Five denominations are in circulation:
- NZ$5 — orange, featuring Sir Edmund Hillary, the first person to summit Mount Everest, with the yellow-eyed penguin (hoiho)
- NZ$10 — blue, featuring Kate Sheppard, leader of the women's suffrage movement
- NZ$20 — green, featuring the reigning monarch
- NZ$50 — purple, featuring Sir Apirana Ngata, a prominent Maori leader and scholar
- NZ$100 — red, featuring Lord Ernest Rutherford, the Nobel Prize–winning physicist
Coins come in denominations of 10c, 20c, 50c, NZ$1, and NZ$2. The kiwi bird appears on the one-dollar coin, which is part of why the currency picked up its famous nickname. Because the lowest coin is now 10 cents, cash totals are rounded to the nearest 10c at the till.
A Pioneer in Monetary Policy
The Reserve Bank of New Zealand holds a special place in economic history as the first central bank in the world to adopt formal inflation targeting, beginning in 1989. Under this framework the RBNZ commits publicly to keeping inflation within a stated band, using interest rates as its main lever. The approach was so successful at anchoring expectations that central banks across the globe later copied it, making New Zealand an outsized influence on modern monetary policy. To explore the country further, see our new zealand country guide.
Using Money as a Traveller
New Zealand is one of the most card-friendly countries in the world. Contactless and EFTPOS payments are accepted almost everywhere, from city cafes to rural petrol stations, so many visitors barely touch cash. Even so, carrying a small amount of notes and coins is wise for farmers' markets, small towns, and parking machines. ATMs are widely available, and major credit and debit cards are accepted at most businesses.
One pleasant surprise for visitors is that tipping is not expected in New Zealand. Service staff are paid a proper wage, prices generally include service, and there is no social pressure to add a gratuity. A tip for exceptional service is welcomed but never required.
Frequently Asked Questions
What currency does New Zealand use?
New Zealand uses the New Zealand Dollar (NZD), symbolised as NZ$ and divided into 100 cents. It is issued by the Reserve Bank of New Zealand and is the country's only legal tender.
Is the New Zealand Dollar the same as the Australian Dollar?
No. The New Zealand Dollar (NZD) and the Australian Dollar (AUD) are separate currencies with different values, designs, and issuing central banks, even though both share the dollar name and use polymer notes.
Can I use US dollars or euros in New Zealand?
Foreign currencies are not generally accepted by shops and businesses. You will need to exchange them for New Zealand Dollars or rely on cards, which are accepted nearly everywhere across the country.
Why is the New Zealand Dollar called the "kiwi"?
The nickname comes from the kiwi bird depicted on the one-dollar coin. Currency traders worldwide adopted "kiwi" as shorthand for the NZD, much as the Australian Dollar is called the "Aussie."